Question

From the followings Balances Sheet of Vikas Ltd. as on 31.3.2009 and 31.3.2010, prepare a Cash Flow Statement:

Liabilities	31-3-2009 Rs	31-3-2010 Rs	Assets	31-3-2009 Rs	31-3-2010 Rs
Share Capital	30,000	1,30,000	Fixed Assets	93,400	1,66,000
General Reserve	30,000	55,000	Stock	22,000	26,000
Profit and Loss Account	20,000	30,000	Debtors	36,000	39,000
Trade Creditors	17,400	22,000	Cash	4,000	5,000
			Preliminary Expenses	2,000	1,000
	1,57,400	2,37,000		1,57,400	2,37,400

Additional Information:

(i) Depreciation charged on fixed assets for the year 2009-2010 was Rs 20,000

(ii) Income Tax Rs 5,000 has been paid in advance during the year.  

Answer 1

Cash Flow Statement                   for the year ended March 31, 2010
Particulars				Amount Rs	Amount Rs
(A)	Cash Flow from Operating Activities
	Net Profit before Tax (WN 1)			40,000
	Add: Items to be added (Non-cash items)
	Depreciation	20,000
	Preliminary Expenses Written-off	1,000		21,000
	Operating Profit before Working Capital Change			61,000
	Less: Increase in Stock		4,000
	Increase in Debtors		3,000	(7,000)
				54,000
	Add: Increase in creditors			4,600
	Cash Flow from Operating Activities before tax			58,600
	Less: Advance tax			(5,000)
	Cash Flow from Operating Activities after Tax				53,600
(B)	Cash Flow from Investing Activities
	Purchase of Fixed Assets (WN 2)			(92,600)
	Net Cash used in Investing Activities				(92,600)
(C)	Cash Flow from Financing Activities
	Issue of Shares			40,000
	Cash Flow from Financing Activities				40,000
(D)	Net Increase in Cash and Cash Equivalents (A + B + C)				1,000
	Add: Cash and Cash Equivalent in the beginning				4,000
	Cash and Cash Equivalent at the end				5,000